Green bond as a new determinant of sustainable green financing, energy efficiency investment, and economic growth: a global perspective

Managing environmental finance in the digital era: Evidence from green bonds

Using recently available data on green finance from the International Monetary Fund, we analyze the impact of digital transformation on green bond issuance in forty-six countries during 1991-2021 within the context of environmental finance management. To measure digital transformation, we utilize the Digital Adoption Index provided by the World Bank and its subcomponents, aligning this analysis with broader environmental finance management strategies. Additionally, we control for the effect of various environmental, economic, and technological factors. Our results reveal a positive association between digital transformation and green bond issuance across these countries. Furthermore, our findings suggest that the effect of digital transformation on green bond issuance may not occur immediately and is characterized by a linear relationship. Our sensitivity testing and endogeneity analysis confirmed the reliability of our findings under different assumptions and model specifications. After decomposing the digital adoption index, our dominance analysis highlighted the key role of advancements in digital adoption by businesses, particularly, and the quality of capital services in the economy in driving the development of the green bond market. Further, stable political conditions, low enforcement costs, and fintech market growth mitigate enhance the digital transformation impact on green bonds. These results indicate potential directions for effective policy interventions.

The impact of data factor-driven industry on the green total factor productivity: evidence from the China

Data factors have become an essential factor of production in today's digital era, and provided renewed energy for China's green and high-quality development. This study analyses the impact of data factor-driven industries on green total factor productivity (GTFP) and the underlying mechanisms using panel data of 277 Chinese cities from 2008 to 2020. The results show that: First, the urban data factor-driven industry can enhance GTFP. Second, the data factor-driven industry can increase the input-output ratio and enhance GTFP by promoting AI technological innovation and AI technological entrepreneurship. Third, the heterogeneity analysis show that in regions with high levels of digital technological innovation, the market size of data factor-driven industries is larger and the effect of data factor-driven industries in enhancing GTFP is more significant. And in regions with low levels of savings, the data factor-driven industry has limited capital availability and is more efficient in using capital, which has a stronger effect on GTFP enhancement. This study provides valuable empirical evidence on the relationship between data factor-driven industries and urban GTFP, and important policy implications for fully leveraging the green economic effects of data factors, and promoting green and high-quality urban development.

Green finance pilot policy and corporate environmental social responsibility: empirical evidence from China's green finance reform and innovation pilot zones

The establishment of green finance reform and innovation pilot zone (GFRIPZ) is a pivotal strategy for harmonizing the twin goals of economic prosperity and environmental preservation. By applying panel data on Chinese A-share listed firms from 2011 to 2022, this study examines the influence of China's green finance pilot policy on corporate environmental social responsibility (ESR) using a difference-in-differences (DID) model. The study's findings indicate that the green finance pilot policy promotes corporate environmental social responsibility. The results remain robust after a series of robustness tests. Moreover, mechanism analysis reveals that the pilot policy promotes firms' ESR through three key channels: financing constraints, green innovation, and corporate governance mechanisms. Additionally, analyst attention can positively moderate the promotional effect of the green finance pilot policy on corporate ESR. Furthermore, this study reveals that the green finance pilot policy's impact on corporate ESR is more pronounced among large-scale firms and firms operating in regions characterized by stringent environmental regulations and greater marketization. The empirical findings present evidence for enhancing ESR through the implementation of the green finance pilot policy in China and offer insights for refining the green finance system.

Achieving zero emission targets: The influence of green bonds on clean energy investment and environmental quality

The effectiveness of green finance in driving clean energy and environmental sustainability in the current era is receiving attention. Therefore, this study proposes an empirical framework highlighting the effects of green bonds (GB) on clean energy investment (CEI), clean energy investment efficiency (CEE) and environmental sustainability of 29 green bond issuing countries between 2014 and 2022. Using system and difference GMM approaches, this study finds that (i) green bond issuance drives clean energy investment. (ii) Green bonds sufficiently enhance the selected countries' environmental quality. These results supplement the promotion of green bonds in increasing the transfer of funds towards renewable energy projects by reducing reliance on fossil fuels. (iii) Using Driscoll & Kraay, Fully Modified-OLS, and changing the dependent variable, this study further supported the idea that green bonds effectively promote the CEE and environmental sustainability of the chosen countries. (iv) Similarly, this study conducted income heterogeneity, showing that green bonds improve high- and middle-income countries' CEI and environmental quality. (v) Finally, the results indicate that resource consumption escalates CO2 emissions by declining the CEI. Technological innovations increase CEI, whereas they do not mitigate CO2 emissions directly, hinting at the requirement for a comprehensive approach. Therefore, inclusive policies on green bond frameworks, robust incentives, and rigorous environmental criteria should be implemented to attract investment in clean energy development and ensure the environmental sustainability of the selected countries.

Assessment of the coupling coordination relationship between the green financial system and the sustainable development system across China

Green finance (GF) is recognized as a key driver of sustainable development. While existing studies have extensively discussed the relationship between GF and the Sustainable Development Goals (SDGs), few have explored the coupling coordination relationship between GF and SDGs. In this paper, we use data from thirty Chinese provinces (municipalities and autonomous regions) from 2008-2021 to examine the degree of coupling coordination development (CCD) between GF and the SDGs systems using the CCD model. We find that most SDGs and their sub-goals exhibit a significant upward trend, except for SDG8, 14-16. GF presents a fluctuating upward trend, with a significant decline in 2010 and 2019. The CCDs between GF and SDGs and their sub-goals generally show an M-shaped upward trend in most regions, with most of them experiencing a synchronous decline in 2011-2012 and 2019. In the analysis of regional heterogeneity, the eastern region performs better in SDG8-9, the central region performs better in SDG3, 14-15, while the western region performs better in SDG7. This paper provides empirical evidence for a further in-depth understanding of the relationship between GF and SDGs, which can contribute to advancing GF development and the SDG process.

Pine needle gasification-based electricity production: Understanding the effect of supply chain

Pine needles (pine tree leaves), found abundantly across continents such as North America, Asia, Europe, South America, Africa, and parts of the Southern Hemisphere, are a significant global concern due to their high susceptibility to catching fire, especially in dry and hot climates. The same issue persists in the Uttarakhand state of India, which boasts ample pine forests, yielding a substantial 1.67 × 109 kg of pine needles annually. In the present study, the annual potential emissions from forest fires in Uttarakhand were estimated to be 58.37 × 109 kg of CO2 equivalent. Therefore, the present research aims to unlock pine needles' potential via gasification for green electricity and biochar production, offering an alternative to coal-based plants while reducing forest fire frequencies. Nevertheless, obstacles hindering pine needle gasification include an unsteady supply chain, limited collection windows (100 days), and plant expenses, including transportation and operational costs. The primary focus of the research is to design and assess the performance of a gasification-based supply chain for pine needles in the Almora District of Uttarakhand. Ten plant capacity scenarios were considered, ranging from 25 to 250 kW. The study incorporated critical factors, encompassing diverse losses within the supply chain, selecting potential plant sites, minimizing transportation distance, and evaluating the supply chain's economic and environmental performance. The economic analysis revealed that the 250-kW plant scenario exhibited a minimum discounted payback period (DPP) of 3.93 years, alongside an internal rate of return (IRR) of 19% and a net present value (NPV) of 653.32 million INR without government subsidies. With subsidies included, the DPP decreased to 1.30 years, improving the IRR to 69% with an NPV of 916.17 million INR. The emission analysis indicated that gasification plant capacity scenarios could potentially reduce 44.63 × 106 to 46.16 × 106 kg of CO2 equivalent emissions annually compared to grid electricity while meeting nearly 5.5% of the electricity demand of Almora district. The present study aligns with SDG-7 (Affordable and Clean Energy), SDG-13 (Climate Action), SDG-9 (Industry, Innovation, and Infrastructure), SDG-11 (Sustainable Cities and Communities), SDG-3 (Good Health and Well-being), and SDG-15 (Life on Land).

The synergetic impact of digital campaigns and economic incentives on environmental performance: the mediating role of household indoor and outdoor activities

The primary goal of this research is to look into the impact of digital campaigns for environmental and economic incentives on environmental performance, with indoor and outdoor activities of households taken as mediating variables. PLS-SEM was used to evaluate and quantify the novel and complex model to meet the study's goals. Furthermore, data were gathered from 1542 Pakistani households using convenient sampling techniques. The study's findings show that digital campaigns and economic incentives significantly increase household's participation in indoor and outdoor activities, which improves environmental performance. This study contributes to the literature on environmental performance by examining digital campaigns and economic incentives as resilient influencers. Furthermore, this study assists authorities in developing an effective and efficient policy that promotes environmental savaging information while providing economic incentives to encourage the activities. At the same time, it emphasizes environmental concerns and how they can be addressed.

Unraveling the influence of green bonds on environmental sustainability and paving the way for sustainable energy projects in green finance

The acceleration of renewable energy has emerged as a cornerstone strategy in mitigating climate change and advancing the sustainable stewardship of our natural resources. Nonetheless, financing renewable energy projects remains a challenging issue. In this context, green bonds have surfaced as a promising financial instrument to propel renewable energy projects forward and foster sustainable resource development. This study endeavors to evaluate the transformative impact of green bonds on renewable energy investments in China. Leveraging the fuzzy analytical hierarchy process (AHP) and the fuzzy weighted aggregates sum product assessment (WASPAS) methods, we delve into the Chinese landscape to dissect the correlation between green bonds and renewable energy investment outcomes. Through extensive literature review, we have identified several factors, comprising nuanced sub-factors, alongside distinctive investment strategies pertinent to the effective utilization of green bonds in the renewable energy sector. The fuzzy AHP analysis reveals that financial, environmental, and regulatory are the most influential factors. Employing the fuzzy WASPAS method, our findings emphasize the transformative potential of green bonds in significantly accessing to capital of renewable energy projects in the context of Chinese. This research sheds light on the pivotal role green bonds play in driving sustainable natural resource development through substantial investments in renewable energy projects.

Unlocking green growth challenges: role of green HRM, green career adaptability, and green career success

Multiple industries face challenges in achieving green growth that needs a fix. This research presents an alternative explanation for the acquisition of green growth using the perspective of employees of manufacturing industries. Thus, the study examines the role of green HRM, green career adaptability, and green career success in achieving green growth. Green growth drivers can construct green infrastructures for developing green aspects in economic sectors such as power generation, transportation, and the residential sector. We inquired Chinese SME employees to fill out a closed-ended online survey. PLS-SEM techniques are used to estimate how the study will turn out. According to the results, green career adaptability plays a big part in green HRM and career success. It also plays a significant role in bringing the two together. The results shown that green HRM, adapting to a green career and doing well in a green career, all help green growth in manufacturing SMEs in China. The study's results are strong in their ability to explain. This is especially true in the academic world, where people who can adapt to setbacks and have a green career are likelier to have a good career in organizations that care about the environment. By doing this, the study also helps guide the strategic development goals (SDGs) for climate action and environmental management by acquiring green growth. So, the study makes different suggestions for what to do.

Does green innovation promote environmental efficiency from a global perspective? A hybrid approach (fuzzy DEA-SEM-ANN)

Green innovation is crucial for reducing carbon dioxide (CO2) emissions and promoting environmental efficiency worldwide. However, there is a lack of scholarly research investigating the relationship between environmentally friendly innovations and improved environmental performance. To fill this knowledge gap, a comprehensive study was conducted using data from 64 countries spanning 2010 to 2018. The study employed a hybrid approach, combining fuzzy DEA, structural equation modeling (SEM), and artificial neural networks (ANN) to analyze the nexus between green innovation and environmental efficiency. The SEM analysis revealed that green innovation, green trade, green employment, and green investment significantly impact environmental efficiency. The ANN model achieves a perfect prediction rate for environmental efficiency and green growth, emphasizing the importance of incorporating various sources of green innovation to achieve long-term environmental goals. The study's findings have significant implications for policymakers and governments, highlighting the value of environmentally friendly technologies and the need to allocate resources toward their development. Regional collaboration and integrating green innovation throughout the development process are essential for achieving environmental efficiency. By embracing green innovation, nations can capitalize on its potential benefits while mitigating pollution and promoting sustainable development. Overall, this research serves as a cornerstone for decision-makers, providing insights into the importance of green innovation and guiding efforts to foster environmentally conscious technologies globally.

How do corporate social responsibility and green finance strategies impact sustainable development in China's renewable energy sector?

As the globe transitions to a low-carbon economy, China's renewable energy (RE) sector is crucial to attaining sustainable growth. Green financing and corporate social responsibility (CSR) strategies have become increasingly important in promoting the growth and sustainability of the RE sector. In order to evaluate CSR factors and green finance strategies for effective integration in supporting the RE industry, this research employs hybrid Fuzzy Analytic Hierarchy Process (FAHP) and Fuzzy VIekriterijumsko KOmpromisno Rangiranje (FVIKOR) approaches in the context of China. The FAHP method is used to determine the various CSR factors and subfactors, while the FVIKOR method is employed to prioritize the key green finance strategies. The findings of the FAHP method highlight the importance of socioeconomic development, environmental protection, and stakeholder engagement as critical CSR factors for RE sectors. Moreover, the results of the FVIKOR method reveal that innovative financing mechanisms, green bonds, and green banks emerged as significant green finance strategies for mobilizing capital and resources for RE projects. The study highlights the value of aspects of CSR and green financing techniques in fostering sustainable development in the RE industry. The results can aid in the promotion of sustainable practices and the assistance of China's transition to a more resource- and environment-wise economy by firms, investors, governments, and other stakeholders.

Does globalization matter in the relationship between renewable energy consumption and economic growth, evidence from Asian emerging economies

The study aims to investigate the impact of social, economic and political globalization on the renewable energy-economic growth nexus in a panel of six Asian emerging economies over the period 1975-2020. The results of the CS-ARDL approach show that renewable energy consumption contributes significantly to long run economic growth. Economic and political globalization firmly hold back economic growth, while social globalization directly promotes economic growth. The nonlinear effects of political, social, and economic globalization on economic growth clearly demonstrate the validity of the inverted U-shaped relationship between political globalization, economic globalization, and economic growth, and the U-shaped relationship between social globalization and economic growth. The study also found that economic, social and political globalization moderated the impact of renewable energy on boosting economic growth. Based on the renewable energy consumption model, it is revealed that economic growth significantly promotes long run renewable energy consumption. Economic, social, and political globalization have significantly boosted long run renewable energy consumption. However, the nonlinear effect model reflects a U-shaped relationship between globalization indicators and renewable energy consumption. The interaction of political, economic, and social globalization with economic growth has also witnessed an increase in renewable energy consumption, which supports the scale effect hypothesis. The causality test concludes that there is a two-way causal relationship between renewable energy consumption and economic growth, thus supporting the feedback hypothesis. The policy implications for Asian emerging economies are discussed based on the empirical analysis of this study.

Impact of green HRM practices on sustainable performance: mediating role of green innovation, green culture, and green employees' behavior

The concept of sustainability in the context of human resource management (HRM), or more precisely, green HRM, has significantly transformed in recent years. Human resources are an important and valuable asset of a firm. In this research, green HRM is concentrated on the areas where HRM is held accountable for the company's sustainability initiatives. The research examines the effects of green HRM on organizational performance in China while considering the mediating roles of green innovation (GI), green employee behavior (GEB), and organizational culture. The data was gathered from 316 HR specialists working in various Chinese manufacturing businesses to meet the study's goals. A self-administered questionnaire utilizing the preexisting scale is used to obtain the data (detail is provided in Table 1). The smart PLS 4 structural equation modeling approach is applied for the data analysis. The study results indicate that green HRM practices influence green innovation (GI), green culture (GC), and green employee behavior (GEB). Furthermore, results also suggest that GI, GC, and GEB influence the organization's sustainable performance (SP). The research has several theoretical, methodological, and practical ramifications for many stakeholders, including the Chinese security exchange commissions, firms' senior management, academics, and HR specialists.

The spatiotemporal dynamic and spatial spillover effect of green finance efficiency in China: analysis based on super-SBM model and spatial Durbin model

Green finance is a key institutional framework supporting China's newly publicized "Ecological Civilization Construction" initiative, and studies have analyzed the influencing factors of green growth from multiple perspectives; there are few studies that have examined the effectiveness of China's multidimensional green finance goals. This study analyzes panel data of 30 provinces in China from 2008 to 2020 and uses the Super Slacks-Based Measure (Super-SBM) model to calculate China's green finance efficiency (GFE) and discusses its dynamic evolution characteristics in spatiotemporal dimensions. The main conclusions are as follows: First, there is a steady upward trend in China's overall GFE value, despite a low level of GFE in general. Second, there is a curse of "Hu Huanyong line," with highs in the eastern region and lows in the central and western regions as the overall distribution pattern. Third, GFE has a positive spatial spillover effect, and green finance development in nearby regions is closely related.

Can Green Credit Policies Accelerate the Realization of the Dual Carbon Goal in China? Examination Based on an Endogenous Financial CGE Model

Green credit is an indispensable funding source through which China can achieve its carbon neutrality goal. This paper quantifies the influences of different green credit scales on energy structures, carbon reduction, the industrial economy, and the macroeconomy. It creates a green credit mechanism related to green technology innovation in a Chinese carbon neutrality computable general equilibrium (CGE) model and integrates energy, environmental, economic, and financial (3EF) systems. The green credit scale can influence green technology innovation and hence CO₂ emissions. The results show that (1) green credit can accelerate China's achievement of its carbon neutrality goal, and the larger the green credit scale, the less time it takes to achieve goals; (2) the influence of green credit scales confers marginal decreasing effects with realistic policy considerations; (3) using a cost-benefit perspective, 60% is the most appropriate green credit scale to use to achieve dual carbon goals in China; (4) the different green credit scales have a heterogeneous impact on the industry output, and high-carbon-emission producers from nonenergy industries need to pay attention to their green credit risk. This research provides a scientific reference for the policy design of China's future green financial market development.

Is there any recovery power for economic growth from green finance? Evidence from OECD member countries

This paper investigates the dynamic interactions between green finance, economic growth, and green energy consumption for the Organization of Economic Cooperation and Development (OECD) members. The econometric analysis is conducted on annual data gathered throughout 2010–2020 using different estimation techniques of the Vector Autoregressive model, causality, and co-integration approaches. The main results confirmed a positive bi-directional relationship between GDP and green energy consumption. In addition, there is a two-way relationship between the volume of green bond issuance and the use of green energy in OECD countries. The recommended practical policy recommendations are establishing a unified green bonds market among OECD member states, prioritizing green projects to support the issued green bonds, improving the financial system, and financing rural electrification and electric vehicle transition by green bonds.

Does green financial reform pilot policy promote green technology innovation? Empirical evidence from China

As a new financial model that balances economic and ecological benefits, green finance (GF) plays an important role in promoting green economic development and ecological environmental protection. Based on the panel data set of 30 provinces in China from 2010 to 2020, this paper uses the synthetic control method (SCM) to explore the impact of the green financial reform pilot policy (GFRP) on the green technology innovation (GTI) capabilities of pilot areas and evaluate the policy effects. The specific research conclusions are as follows: (1) On the whole, the GFRP has a positive role in promoting the GTI capability of the pilot areas, but this role is different due to the different resources, environment, and economic development levels of each region. The areas with economic development levels in the middle and head are obviously affected by the policy, and the less developed areas are less affected by the policy or even have a restraining effect. (2) Although the pilot policy has improved the GTI capability of the pilot area, the promotion effect is unstable, that is, the implementation effect of the policy is unstable. In the early stage of policy implementation, the promotion effect of the policy on the regional GTI capacity is the most obvious, and this promotion effect begins to show a downward or stable trend in the 2-3 years after the policy is implemented. Based on the above conclusions, it can provide some reference for the revision and improvement of GFRP.

Evaluation of financing efficiency of strategic emerging industries in the context of green development: evidence from China

Strategic emerging industries are key areas to transform the traditional industrial model of high pollution, high energy consumption, and high emissions. This paper focuses on the measurement of financing efficiency of strategic emerging industries. On the one hand, in order to overcome the interference of external environment and statistical error existing in the traditional single data envelope model, the SSBM-BOOT five-stage model is proposed. On the other hand, Malmquist index method and Luenberger productivity method are combined to evaluate dynamic efficiency, which select Beijing-Tianjin-Hebei listed companies' data. The results show that (1) external environmental factors play a significant role in financing efficiency. The empirical results of the SSBM-BOOT five-stage model show that environmental factors "raise" the efficiency value of the whole Beijing-Tianjin-Hebei region. (2) Based on the revised data and the overall and decomposition results of SBM-ML index, it can be seen that the regional industry is still in the stage of scale expansion, and the financing efficiency depends on technological innovation that needs to be improved. Finally, the paper puts forward the concrete strategies of creating industrial development environment, promoting technological innovation, and establishing green investment and financing mechanism.

How Do Green Finance and Energy Efficiency Mitigate Carbon Emissions Without Reducing Economic Growth in G7 Countries?

Climate change is one of the most serious threats facing the world today. Environmental pollution and depletion of natural resources have been highlighted by the United Nations Sustainable Development Goals (SDGs), paving the way for modern concepts such as sustainable growth to be introduced. Therefore, this research explores the relationship between green finance, energy efficiency, and CO2 emissions in the G7 countries. The study uses panel data model technique to examine the dependence structure of green finance, energy efficiency, and CO2 emissions. Moreover, we use DEA to construct an energy efficiency index of G7 countries. A specific interval exists between the values of the energy efficiency indexes. Japan, the United Kingdom, and the United States were named the most energy-efficient countries in the world, based on results obtained for five consecutive years in this category. However, according to the comparative rankings, France and Italy are the most successful of all the G7 members, followed by the United Kingdom and Germany. Our overall findings of the econometric model confirm the negative impact of green finance and energy efficiency on CO2 emissions; however, this relationship varies across the different quantiles of the two variables. The findings in the study confirm that green finance is the best financial strategy for reducing CO2 emissions.

The Impact of Sustainable Bond Issuances in the Economic Growth of the Latin American and Caribbean Countries

There is beyond any doubt that Latin America is one of the most important emerging markets in the world, which has increased its importance in the last decades. In effect, the issues of green, social, and sustainability (GSS) bonds are gaining more and more importance in the Latin American and the Caribbean (LAC) financial markets. They are specifically focused on raising funding for public expenditure programs that contribute to achieving several objectives, such as climate and environmental projects, energy efficiency, pollution prevention, sustainable agriculture, fishery and forestry, etc. The main objective of this paper is to provide a literature revision of the evolution of the issuance of GSS bonds in the LAC region and to analyze the economic growth of the countries which issue this type of bond. We will apply multiple linear regression to relate the economic growth of some countries of the LAC region with the variables proposed by the IFC Emerging Market Green Bonds Report (2019). It has been shown that the economic growth of the countries in the LAC region that are issuing GSS bonds is significantly related to the Sovereign Green Issuance (Total Planned), the ratio of Private Credit/GDP, and the Rule of Law Index. However, this research has had the limitation of the scarcity of available data in the LAC markets.